On April 25th, the Alternative Reference Rates Committee, an advisory committee of the New York Federal Reserve Bank (ARRC), released recommended contractual fallback language for U.S. dollar LIBOR denominated floating rate notes and syndicated loans.

This language is part of ARRC’s mandate to help resolve issues with contracts that reference LIBOR.  The ARRC recommends the Secured Overnight Financing Rate (SOFR) as s replacement to LIBOR and has put in place a comprehensive plan of transition – the Paced Transition Plan